Mumbai, – In a significant move, the Central Bureau of Investigation (CBI) has raided the premises of the former promoters of Dewan Housing Finance Corporation Ltd (DHFL), Kapil Wadhawan and his brother Dheeraj, along with Sudhakar Shetty, a well-known builder associated with the Sahana Group. This action follows the registration of a massive Rs 34,615 crore bank fraud case against them.
The CBI conducted searches at 12 locations in Mumbai, recovering critical documents related to the fraudulent activities. The investigation centers on DHFL, which allegedly availed credit facilities worth Rs 42,871 crore from a consortium of 17 banks led by Union Bank of India. These loans, however, were reportedly diverted to companies controlled by the Wadhawan brothers and Shetty in the form of loans. DHFL later defaulted on repaying the loan amount of Rs 34,615 crore, leading to a complaint by the consortium of banks.
The Wadhawan brothers, in collaboration with Shetty, are accused of misusing the funds and diverting substantial sums into Shetty’s companies. Shetty, a former owner of the infamous Deepa dance bar in Vile Parle West, later moved into the construction sector and was involved in several shady financial dealings. Alongside the Wadhawan brothers, Shetty and his companies are now named in the case.
The CBI’s probe also indicates that the brothers had directed DHFL to issue loans to entities they controlled. The agency’s investigation has revealed a lack of proper documentation for many loans, which were allegedly sanctioned and disbursed merely through e-mail communications. Additionally, the CBI’s findings point to the diversion of Rs 24,595 crore to 66 companies linked to the Wadhawan brothers, with Rs 11,909 crore still pending for repayment.
Moreover, DHFL is accused of disbursing Rs 14,000 crore in fictitious loans to 1,81,664 non-existent individuals, with the records of these transactions referred to as “Bandra Books.” The CBI’s press release noted that the accused misappropriated funds from the 17-bank consortium by creating fake companies and falsifying the company’s financial statements.
The Enforcement Directorate (ED) had previously arrested the Wadhawan brothers in connection with the Yes Bank loan fraud and Iqbal Mirchi cases. Both brothers are currently in judicial custody. The CBI’s recent actions underscore its commitment to addressing financial frauds and preventing the mismanagement of public funds.